Informal Employment
Prepared by Peter Lichang Kuo ( Chinese ) In 1985, a senior executive from an American company told me, " Taiwan 's national income has already reached ‘ USD 3,000 ’ per capita. It's no longer worth investing here!" I replied, " Even if it reaches $30,000, it would still be worth investing !" They actually began to withdraw investments and close their factories in Taiwan . All the people laid off by this company were " formal (regular) employees " — enjoying labor insurance and various benefits. Some of them searched for new jobs for half a year but couldn't find anything, and in desperation, one of them confided, saying, " If I can't find a job soon, I'll have to become a taxi driver !" If someone becomes a self-employed taxi driver, they would be considered part of the "informal employment" sector. Fig 1: Formal employees enjoy various benefits Unexpectedly, in 1986, a news report about a " taxi drive...